The Traders Prison Cycle

Comments....

Or is this the system traders prison?

This is very very beautiful and true!

The "Ahah" moment , is when the trader realizes he dont have control on the short term , and must accept the randomness of the results. At this moment he starts having discipline and patience to wait for the strongest setups . But most give up before this.

corrected

Lol

That's the only way one can reach success in this business. Once you made all the possible mistakes, if you still have money you may start making money.

ha ha) It's funny. Specifically, all except one that is not working already.

Seriously though, it is a prison, in which you get valuable experience.

That's better:

Thank you for sharing a process for losing money.

I notice that each cycle starts simply with 'Create New System' followed by crossing one's fingers until the pain gets too great.

Aspiring system builders may consider this process instead:
1. Study basic literature on financial markets and speculation.
2. Study the people who excel in the field (authors like Schwager and Lefevre come to mind).
3. From 1 & 2, develop a core philosophy that informs your approach towards trading.
4. Develop models to test your assumptions and the validity of your approach.
5a. Optimize entry/exit to ensure that your system captures the nature of markets.
5b. Optimize risk exposure and trade size to ensure that your system respects the nature of your stomach.
6. Put the pieces together, figure it all out before you start.